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Investing.com - Truist Securities has lowered its price target on Tyler Technologies (NYSE:TYL) to $675.00 from $775.00 while maintaining a Buy rating on the stock. The company currently trades at $475.95, near its 52-week low of $450.00 and well below its 52-week high of $661.31.
The firm described Tyler’s third quarter 2025 results as "solid" but emphasized that commentary from the earnings call was more significant. Truist noted that Tyler Technologies expressed confidence in driving durable SaaS, subscription, and overall recurring revenue growth while consistently expanding profits and cash flow. InvestingPro data shows Tyler maintains a "GOOD" overall financial health score of 2.64, though it trades at a high P/E ratio of 64.74.
According to Truist, Tyler indicated that demand signals and sales activity have improved following what had been a soft first quarter and inconsistent second quarter of 2025. The company also shared an initial 2026 SaaS revenue growth assumption of approximately 20%, which Truist viewed positively given some investor concerns about sustained strong growth. This projection exceeds Tyler’s current revenue growth of 10.69% over the last twelve months.Want deeper insights? InvestingPro offers 11 more ProTips and comprehensive financial analysis for Tyler Technologies, including detailed valuation metrics and growth projections.
Truist Securities continues to view Tyler as a "unique vertical SaaS story" with favorable risk/reward characteristics, noting it trades at 8x estimated 2026 sales with a free cash flow multiple in the 20s.
The reduced price target of $675, down from the previous $775, reflects Truist’s more conservative long-term revenue compound annual growth rate (CAGR) assumption of 12%, down from 14% previously.
In other recent news, Tyler Technologies reported its third-quarter earnings for 2025, surpassing expectations with earnings per share of $2.97, compared to the forecast of $2.86. The company also exceeded revenue projections, reporting $595.9 million against an anticipated $594.32 million, marking a 10% year-over-year increase. Following these results, Tyler Technologies raised its revenue guidance to a range of $2.335 billion to $2.360 billion and adjusted its non-GAAP EPS guidance upward by $0.10 at the midpoint.
In response to these earnings, DA Davidson adjusted its price target for Tyler Technologies to $540, maintaining a Neutral rating, while Evercore ISI lowered its target to $575, keeping an "In Line" rating. Citizens, however, reiterated its Market Outperform rating and maintained a $700 price target. These developments highlight the mixed reactions from analysts regarding Tyler Technologies’ financial outlook.
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